Issuu on Google+

business & Leisure: Frankston | Mornington Peninsula | Dandenong

February 2014 | $4.95 (GST inc.)

WHERE THERE’S A WILL...

2450

ASIAN PACIFIC BOSS WILL DEAGUE COMPLETES FRANKSTON’S BIGGEST REDEVELOPMENT

MORE OF THE SAME

HIX BRAND TAKES OFF

SOCIAL ANALYST DAVID CHALKE SEES 2014 UNFOLDING IN A SIMILAR MANNER TO 2013

BEER, WINE AND PLENTY OF SPIRIT FROM THE HICKINBOTHAMS

RENT YOUR OFFICE TODAY | Only a limited number of offices available so get in quick! RENT YOUR OFFICE TODAY | Only a limited number of offices available so get in quick! RENT YOUR OFFICE TODAY | Only a limited number of offices available so get in quick! • • • • •• •• •

Serviced Offices for 1-15 people from Serviced for 1-15 people from just $105 Offices per week Serviced Offices for 1-15 people from just $105 per week Virtual Offices from just $15 per week just $105 per week Virtual Offices from just $15 per week Fantastic onsite facilities including Virtual Offices from just $15 per week Fantastic onsite facilities including meeting rooms, café, restaurant, serviced Fantastic onsite café, facilities including meeting rooms, restaurant, serviced apartments, laundromat & more meeting rooms, café, restaurant, apartments, laundromat & more serviced apartments, laundromat & more


who/what/where

www.businesstimes.net.au

ISSUE 42 / FEBRUARY 2014

FRANKSTON / MORNINGTON PENINSULA / DANDENONG

TONY MURRELL KEITH PLATT MARG HARRISON DAVID HILET MELANIE LARKE SIMON BROWN Design MARLON PLATT

Publisher / Director Editorial Director Sales Director Managing Director Material production / Prepress

Inside

Departments

5

SAME AGAIN: What’s changed? Not much really, says analyst

News Busy Bites Networking gallery Business Directory

SUCCESS BREWING: Hix Beer, a new brand for winemaker Hickinbotham.

Columns

15

Email: General: inquiries@businesstimes.net.au Editorial: news@businesstimes.net.au Advertising: sales@businesstimes.net.au Artwork: production@businesstimes.net.au

BusinessTimes is published 11 times a year by BusinessTimes Pty Ltd and printed by Galaxy Print & Design, 76 Reid Parade, Hastings, Victoria 3915. Postal: PO Box 428, Hastings, Victoria 3915 Tel. 03 5979 3927 Fax. 03 5979 7944

February

business

DISCLAIMER: Information in BusinessTimes contains general advice only. No article or column has been prepared taking into account any individual reader’s financial situation, investment objectives or particular needs. Readers should personally consult professionals for advice on any matter, including investment, health and the law. While all care is taken, BusinessTimes accepts no responsibility for errors or omissions in the published material. Views expressed are not necessarily those of BusinessTimes Pty Ltd. All content is copyright.

Frankston

n Peninsula | Morningto

2014 | $4.95

(GST inc.)

g | Dandenon

E WHERE’S THER ... A WILL

DEAGUE BOSS WILL ASIAN PACIFIC FRANKSTON’S COMPLETES OPMENT BIGGEST REDEVEL

ES OFF

ND TAK

E THE SAM MORE OFDAVID CHALKE SEESTO2014 2013 MANNER SOCIAL ANALYST IN A SIMILAR UNFOLDING

HIX BRA

OF SPIRIT AND PLENTY BEER, WINETHE HICKINBOTHAMS FROM

in quick! so get get in quick! available quick! of offices available so so get in from limited number of offices available

COVER: Asian Pacific boss Will Deague has overseen Frankston’s biggest redevelopment – Peninsula on the Bay . SEE P12

Networking: Ivan Misner Health: Mike Ellis Markets: Richard Campbell Social Media: Jessica Humphreys Excel: Neal Blackwood Managing: Hamish Petrie

10 18 19 20 20 22

number of offices 1-15 people from | Only a number • Serviced Offices for TODAY | Only aa limited from for 1-15 people people week Offices OFFICE TODAY Only limited per week for 1-15$15 per • Serviced just $105 Offices OFFICE TODAY | RENT YOUR per week from just $15 per week • Serviced Offices OFFICE just $105 including per week RENT YOUR from just per week • Virtual just $105 Offices serviced just $15 including onsite facilities RENT YOUR • Virtual facilities restaurant, Fantastic Offices from

2450

Make sure every business knows your business. For advertising, contact Marg Harrison on 0414 773 153 or marg@businesstimes.net.au

& Leisure:

4, 5 6, 7 8 23

•• Virtual onsite café, serviced including facilities restaurant, & more serviced • Fantastic onsite café, meeting rooms, rooms, laundromat • Fantastic & more café, restaurant, meeting rooms, apartments, laundromat & more meeting apartments, laundromat apartments,

www.facebook.com/BusinessTimesAU Check updates online at www.businesstimes.net.au

Wine in waiting. Hickinbotham of Dromana. Picture: Keith Platt

Wake up and smell the coffee

Copy and Print in mono or vibrant full colour Send and receive faxes

 

Scan files direct to your computer or to email Lower running costs compared to small desktop printers and faxes!

CALL NOW FOR YOUR FREE BUSINESS HEALTH CHECK 1800 134 820

Viatek South East Victoria - Supporting Gippsland, Latrobe Valley and Mornington Peninsula 2 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | February 2014

D06317

 

2464

For the cost of a coffee a day, you can upgrade your business.


2466

Your new shining star in Mornington. We are delighted to announce that your new Mercedes-Benz dealership in Mornington is now open. Please stop in for a coffee to discuss your new vehicle requirements, for any servicing needs or to experience the expansive new showroom. For all your Mercedes-Benz requirements visit your local dealer, the team at Mercedes-Benz Mornington.

Our new Dealership features: • An expansive new car showroom. • Mornington Peninsula’s largest Pre-Owned Prestige vehicle display. • Full service facility, Cafe and Customer Lounge with Wi-Fi. • State-of-the-art 8 bay workshop with the latest diagnostic equipment. • Extensive customer car-parking. • Commercial vehicle centre.

LMCT443

Please call in to see Chris Thoday and the team at Mercedes-Benz Mornington for all your Mercedes-Benz requirements.

Mercedes-Benz Mornington

29-31 Mornington-Tyabb Road, Mornington 5973 9688 February 2013 | Frankston / Mornington(03) Peninsula / Dandenong | BusinessTimes | 3 www.mbmornington.com.au


PEOPLE

n Bizzquiz

Director of Frankston-based building survey company Plan Scan (Aust) Pty Ltd, Tony Wishart, says his company specialises in issuing building permits and providing advice to builders. The company operates throughout Victoria with a network of qualified building inspectors making inspections on behalf of Plan Scan’s building surveyors. Wishart is a part-time lecturer at Chisholm Institute for building surveying and builders’ registration certificate courses. Before joining Plan Scan in 2000 he was a senior technical advisor with the Housing Industry Association following two years as a manager with Mornington Peninsula Shire and five years as building services coordinator and municipal building surveyor with the former Shire of Mornington.

2476

I dreamed of being … able to do whatever I like and have the time and money to do it with the people I love. My first paid job was … waiting at the post office for telegrams and delivering them by push bike. In 10 years I will be … moving to pass the

business onto a future director who will be transitioned into this role over the next 10 years. Our business planning entails … knowing our product, knowing our clients and knowing the business we are in better than others. This allows us to plan to move with the never-ending changes we must deal with in the present day workplace. Tip for success … Work hard, work smart and employ good people who have a drive to help you succeed and care about your business. I am inspired by … people who stand up for what they believe in. Anyone starting a business should … know the profit and loss on the product they are supplying and ensure the business is viable before entering into the business. I’ll know I’m successful when … I have achieved all my goals in life. My mother and father always told me … to work hard, be honest and ensure you are always your own person. I wish I had … more time to surf, travel with my wife and play golf. I wish I had not … got washed up on the coral in Sumatra.

4

|

BusinessTimes Frankston / Mornington Peninsula / Dandenong | February 2014


What’s changed? Well, not much really When it comes to predicting consumer trends for 2014, Jean-Baptiste Alphonse Karr was right when he stated “Plus ça change, plus c’est la même chose” (The more things change the more they are the same). David Chalke* Social Analyst

2479

Enthusiasts got up. As a consequence, consumer confidence, after a brief post-election uptick, has fallen back to the levels of early 2013. This stubborn refusal to follow Bobby McFerrin’s advice to “Don’t worry, be happy” is bolstered by the continuing, day-to-day reality of inescapable, ballooning utility costs and the lurking

s s

Nothing really has changed from 2013. Despite the cathartic relief of ridding themselves of the clearly inept and dysfunctional Rudd/Gillard/ Rudd governments Australians’ mindset has shifted little in 2014. The November federal election was not so much an optimistic vote for a better way as a choice of the least dis-preferred of two not particularly inspiring options. In this environment, it was hardly a surprise that fringe parties such as Palmer United and the Motoring

spectre of rising unemployment. Whatever the macro-economic data may show, Australians’ remain cautious about their financial future and hence continue to practice their rediscovered habits of prudence, thrift and commercial wariness. What this means for small and medium enterprises (SMEs) is that if you found things tough in 2013 and you have changed nothing then expect 2014 to be even tougher. If, on the other hand, you followed some of the advice this column offered last year then you are probably less pressured. However, don’t rest on your laurels the imperatives of agility and responsiveness still apply in 2014. As the world has moved from the 20th Century business model of mass production, mass marketing and mass communications to the new paradigm of tailored, individual and local, the opportunities for SMEs have multiplied. Traditional SME advantages of closeness to their customers and 11

February 2014 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 5


BUSY BITES

Mortgage mediation Perhaps unsurprisingly, just five per cent of Australians believe a bank should automatically be able to take possession of a home if mortgage repayments fall behind by two or three months. A study by Galaxy Research on behalf of Mortgage Mediators shows 82 percent of Australians feel we should follow the United States where banks are required to mediate with the mortgage holder to arrange a repayment plan or allow the borrower to sell the property. “On average, foreclosures are now running at 50 a week and increasing. That’s pushing up the cost of lenders mortgage insurance, adding to bank costs, and creating more stress -- often accompanied by aggression – among those affected,” Mortgage Mediators CEO Terry Hunter said. Meanwhile, data analytics company Veda said consumer credit demand for the December quarter compared to the same period in 2012 was flat (+0.4%), representing an easing in the pace of growth from the increase of 7.4 per cent recorded in the September quarter. Mortgage inquiries continued to rise, increasing by 15.3 per cent year on year, an increase from 9.7 per cent in the September quarter.

smartphones give boost TO SALES More Australian small to medium businesses (SMEs) are tapping into our growing reliance on smartphones and tablets, according to the annual Sensis e-business report, released today. Ninety-six per cent of Australians are now online and the proportion accessing the internet using a smartphone has risen by 10 per cent to 68 per cent. Tablet use increased to 50 per cent (up from 34 per cent in 2012). Other key findings include: • 72 per cent of Aussies own a smartphone (up from 59 per cent in 2012) • 44 per cent of Aussies own a tablet (up from 30 per cent in 2012) • Tablet use was highest among 40-49 year-olds while smartphone use was favoured by teens and twenty-somethings. Smart SMEs are making it easier for consumers to do businesses with them via portable devices with companies offering mobile optimised websites. “The number of SMEs that have optimised their websites for mobile devices has almost doubled, to 17 per cent, in the past year, up from 9 per cent in 2012, and 5 per cent in 2011,” said report author Christena Singh.  “For Australian businesses to remain competitive it is vital that they have a website that works well on portable devices. “Although there is more work to be done, these are encouraging signs that SMEs intend to capitalise on the opportunities that portable devices present with a further 24 per cent planning to introduce mobile sites in the coming year.” The report also found consumers are using their mobile devices for different online tasks: • Tablet users were more likely to look for information on products and services (66 per cent) and suppliers of goods and services (63 per cent) • Smartphone users were more likely to look for information such as maps and weather updates

and use social networking sites (71 per cent each) • 48 per cent of tablet users use them to order products and services compared to 36 per cent of smartphone users.  “Consumers in higher income brackets are more likely to use their portable devices to research and purchase so it’s important that businesses can be easily found online if they are to make the most of this trend,” Ms Singh said.  Other key findings include: • The number of SMEs using internet marketing increased to 45 per cent in the past year, up from 38 per cent • 32 per cent are using search engine optimisation (up from 29 per cent in 2012) • 29 per cent are advertising on social networks (up from 22 per cent) • 21 per cent are using paid search engine marketing (up from 17 per cent).  While 58 per cent of Australian consumers have downloaded a mobile app in the past year, just five per cent of SMEs introduced an app in the last year. However, 13 per cent of SMEs intend to develop one in the next 12 months. The proportion of businesses featuring independent reviews of products or customer testimonials on their websites increased to 36 per cent (up from 27 per cent in 2012), 76 per cent now feature product images (up from 72 per cent in 2012) and 40 per cent (up from 37 per cent in 2012) include pricing information.

ss regularly share busine e W . ok bo ce Fa on esAU Follow us ok.com/BusinessTim bo ce fa w. w w s: tip d stories, events an are you would like us to sh If you have something times.net.au act us marg@business nt co se ea pl ok bo ce on Fa g). ; 0414 773 153 (Mar Call us on 5979 7744

6 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | February 2014


website neglect costs business Thousands of Australian businesses are missing out on sales and new customers because they are not boosting the visibility of their websites, according to research by digital marketing service provider Sensis. Sensis managing director John Allan said that while many small and medium sized businesses had websites, less than a third were using tools, such as Search Engine Optimisation, to drive traffic to the sites. “Australian SMEs are beginning to realise the importance of making their websites easy to find, with the percentage of businesses utilising SEO up from 21 per cent to 32 per cent in the past three years, however there are still many businesses who fail to tap into its potential,” Allan said. He said a full-service SEO product could help small businesses ‘Half of consumers use easily implement tablet to access internet’ and manage digital presence in an – Sensis 2013 E-Business survey. increasingly popular search–led world. The recent 2013 Sensis E-business report showed that: • 68 per cent of Australian consumers access the internet with a mobile phone (up from 58 per cent in 2012). • 50 per cent of consumers accessing the internet using a tablet (up from 34 per cent in 2012). • Just 18 per cent of SMEs use the internet to advertise on other websites while 32 per cent of small businesses actively use SEO.

innovation will help smes: ADVISORS A focus on innovation will help SMEs rebuild confidence and grow in 2014, says Chris Gebhardt. head of accountancy firm William Buck’s Business Advisory focus group. Gebhardt said continuing economic uncertainty

and erratic business and consumer confidence levels had left many SMEs “sitting on their hands” for prolonged periods. “Innovation could help businesses think and act differently and put them ahead of the competition,” Gebhardt said. “When the economy is sluggish and many businesses are sitting tight, those who are actively looking for new opportunities are the ones who will be rewarded. “Innovation in itself won’t be a catalyst to growth or business success, but what it will do is enable a business to focus on finding new ways of doing things, which in turn will lead to new opportunities or greater efficiencies. “A good place to start is to look at innovation in the retail sector where the contact with customers is so direct and it’s the consumer who is driving the way products and services are delivered. “Businesses should frequently explore other industries and markets for fresh ideas that they can bring into their own industry and market.

success is in the mind, says doctor Dr Helena Popovic will discuss the neuroscience of success when she addresses the March WomenConnect lunch by Frankston Greater Business Chamber. Dr Popovic, a specialist in how to improve brain function, has traded private practice for the conference platform so she can reach more people with her message of Come Alive and Thrive.  She is founder and CEO of Choose Health - Better Living for Busy People. The lunch is on Wednesday 5 March at Frankston Arts Centre, starting at midday. Costs are $65 for chamber members, $69 for non–members and $600 for a table of 10. A $120VIP ticket  includes meeting with Dr Popovic for an hour before the lunch, a glass of champagne on arrival and a “goodies” bag. Call Allison, 0448 781 140.

Tax man cometh SMEs are responsible for about 60 per cent of almost $18 billion owed to the Australian Tax Office. And the ATO is looking at ways to collect the debt. Debt collection expert and Prushka CEO, Roger Mendelson says SMEs need to protect themselves from incurring debt and penalties which could threaten their businesses while showing “greater responsibility in paying their national economic contribution”. He says SMEs should not waste time in collecting money owed to them. “Ensure your trading terms are set up so that any debt recovery costs are covered by the debtor, this will make it far easier for you to recover money owed,” Mendelson says. “Go through old written-off accounts and refer them to a collection agency which is prepared to take them on.  The longer a debt is left the harder it is to recover.” He advises companies with tax debts to hire an accountant to “come to an arrangement with the ATO quickly”. “For tax debts against individuals exceeding $5000 the ATO has a policy of proceeding to bankruptcy, even if not commercially viable to do so.”

it’s eAsier thAn you think Ph: 03 5911 7000

328 Main Street Mornington VIC Australia E: admin@smartbusinesssolutions.com.au

Full practice including l internationa tax

2467

A chAnge in the right direction

Free helpful hints available online! www.smartbusinesssolutions.com.au February 2014 | Frankston / Mornington Peninsula / Dandenong | BusinessTimes | 7


NETWORKING gallery

1. Formerly called Barloworld, Mercedes-Benz Mornington has rebuilt its Tyabb Rd showroom and reopened in January. The service team: Steve Williams, Chris Wills, Michael Ramac, Nick Hollowood, Bill Duyvestyn, Jesse Batchelor, 2. Anthony Carvso, (front) Saskia Car and service manager Mark Seltin. 2. Customer Relations manager Jade Thoday with assistant accountant Kylie Duggan.

1

2

3

4

5

6

3. Mercedes-Benz Mornington sales manager of pre-owned vehicles Jared Lechte with general manager Chris Thoday. 4. Sales executive Jeremy Slade with service advisor Saskia Car and parts specialist Annibale Iannitti. 5. Sandstorm Events are again running the spectacular sand sculpting event on Frankston Waterfront. Visitors Anne and Hayden Blakeman, of Mt Waverley. 6. Taylah and Shelby Redman, daughters of Sandstorm Events owners Sharon and Peter Redman.

8. Jonathan Lazarus, from the Economic Develpoment department of Frankston City Council with Michael Watchorn, campus manager of Monash University’s Mornington Peninsula campus.

  

7

Eyewear As Individual As You Are Now stocking

BORSALINO

Limited Edition

Ph 5975 3235 57 Main Street, Mornington

MainStreet Eyecare 2475

 

8

 

    

 This is Your Opportunity 

After 28 years internationally and 15 years in Australia BNI is the world’s  most successful Referral Organisation.   Members in this region reported over $9 Million in generated business  from BNI last year. We build referral networks around your business and you benefit with  long  term referral partners that lead to business and profit growth.   Why not attend a meeting your local area where you can meet and  connect with other local business and see what opportunities await you  and your business.   For your nearest group see our website or call 9782 0555





 8 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | February 2014  

2482

7. Quest Frankston Invited clients to celebrate the festive season with a barbecue on the deck on 19 December. Palatina Negara and Mike Dyck, of Asian Pacific.


9

10

11

12

13

14

9. Bank of Queensland contingent: Peter McDonald, Stuart Taylor and owner John Hicks. 10. The team at ASV Partners, accountants and taxation advisors: Top from left: Robert Cox, practice manager, Jessie Zhang, accountant, Pasha Memon, accountant, Gerald Hogg, manger of business services, Pavel Nagorny, accountant. Front from left: Nurudeen Abbas, partner, David Hindle, tax consultant and auditor, and Jose Alguera-Lara, partner. 11. Asian Pacific held its client end-of -year function at Peninsula On The Bay on Tuesday 12 December. Nick Bryant, of Eastern PC (left), is pictured with Marg Harrison, sales and marketing director of Business Times), and Gary Wake, of Port Philip Financial Solutions. Photo: The Biz Photography. 12. Mark Engwerda, of Belman Property Group, Kristy Flett, of Quit Cigarettes in 60 Minutes, Sarah Demitri, of Asian Pacific), and Palatina Negara, business developement executive of Asian Pacific. Photo: The Biz Photography. 13. Gordon Smith, of Profile Wealth Partners & NRG Concepts, Jodi Clarke, of The Hypnotherapy Clinic, and Tony Sambell, Spicey Web Design). Photo: The Biz Photography. 14. Margaret Grant, Joanne Gardiner and Steve Simpson, from Thomson Reuters, and Shannon Sidaway, of Precision Books. Photo: The Biz Photography. 15. Sandra Schikora and Katia Mossiter, of Spicy Web Design. Photo: The Biz Photography. 16. Neville White, Zeke D’Souza, Craig Muller and Rebecca Pocuca, all from Flood Restoration Australia. Photo: The Biz Photography. email marg@businesstimes.net.au if you have something to share.

16

15

The key to a great company is hiring the right people and keeping them. Poor hiring decisions cost you money and cost you time – time spent training the wrong person; time spent recruiting all over again; and more time training the new staff member. We know how to improve decision-making processes and recruitment choices.

INFLUENTIAL HICKINBOTHAM revolutionary HICKINBOTHAM revolutionary

INNOVATION INNOVATION

Alan R Hickinbotham (1898-1959), scientist and developer of the oenology course at Roseworthy College, SA, was instrumental in Alan R Hickinbotham (1898-1959), scientist and developer of the the recognition of the importance of pH control in winemaking. oenology course at Roseworthy College, SA, was instrumental in Australian wine enjoys a reputationoftoday that is in nowinemaking. small part a the recognition of the importance pH control result of hiswine innovative Australian enjoys awork. reputation today that is no small part a result of his innovative work. The Hickinbotham name has been influential in Australian winemaking for over 80 years. It is the name behind many great The Hickinbotham name has been influential in Australian names.The tradition continues. winemaking for over 80 years. It is the name behind many great

2474

names.The tradition continues.

Alan R Hickinbotham Alan R Hickinbotham

Ph: 5981 0355

Hickinbotham 2010 Pinot Noir 14 Hickinbotham Pinot Noir nominated for2010 Winestate 2013

nominated forof Winestate 2013 Wine the Year

Wine of the Year

www.businesstimes.net.au

Change for positive growth Phone. 9005 7079 Mobile. 0419 283 363

W. www.somuchpotential.com.au/ e. smp@somuchpotential.com.au

Unlock the potential in your current employees • Identify strengths, stress points and training needs. •Team development (using Behavioural Analysis) Also career planning & personal development Call or email to learn more. ObligatiOn free.

2463

What’s in What’srespect in a a name? name? HICKINBOTHAM respect vision HICKINBOTHAM INNOVATION vision inventionIntegrity INNOVATION leadership pioneering legacy Integrity leadership legacy ingenious pioneering invention INFLUENTIAL ingenious

Latest Networking Galleries

February 2014 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 9


NETWORKING

Attitude is a choice, so choose with wisdom

two ears and only one mouth for a reason – those who choose to use their ears more than their mouth usually gain more valuable information than those who don’t. 5. Always networking. The strongest networkers I’ve met are those who don’t turn their networking efforts “on” and “off” according to pre-determined hours. Networking is not a “punch the clock” activity. 6. Thanking people. This sounds so simple and obvious, but I continue to be surprised at the number of people who don’t practise this common courtesy. 7. Enjoying being someone who helps people. This trait is very difficult to fake. A sincere love of helping others is an unbeatable complement to a hard and focused business drive. 8. Being sincere. Another trait that is pretty easily seen through if it’s not really meant. No one wants to do business with a snake oil salesman. Starting this week, try making a conscious effort to be aware of your attitude at all times and if it could stand some improvement think about three simple things you could choose to do to change your attitude for the better on a daily basis. If you’ve already got a great handle on maintaining a positive attitude, take this week to focus on one or more of the other traits of a master networker and think of three ways you can build your effectiveness in these areas.

Situations have arisen that reminded me yet again that attitude shapes the outcome of everyday dealings in huge ways. Because of this, I decided to visit this idea in this month’s column. Some days my schedule involves marathon radio interviews beginning at 4 a.m. and, as you can imagine, getting up at an hour when roosters haven’t even begun to think about warming up their vocal chords is not the most enticing of tasks. However, as the founder and chairman of an international organisation, I agree to do these interviews at such an outrageous hour because it is my responsibility to do whatever needs to be done to network for the organisation. Now, can you imagine what would happen if I answered the interviewer’s first question – which is always “How are you doing today, Dr. Misner?”– by grumbling about how I had stubbed my toe, how tired I was, and how I wished I was back in my warm bed? What would happen is that people would be immediately turned off by my negative attitude and nobody would listen to me. This brings me to my point that in order to be a master networker, you must always maintain a positive attitude no matter what. With almost three decades of professional networking experience, one thing I’ve learned is how important a positive attitude is to successfully network. And if I’m going to go around telling other people how to discipline and train themselves to network effectively, then I darn well better be walking the talk (or at least limping along,

Dr lvan Misner*

Networking specialist

To be a master networker you must always maintain a positive attitude no matter what. Try making a conscious effort to be aware of your attitude at all times. stubbed toe and all) and maintaining the positive attitude of a master networker. Now that I’ve shared one of the most important traits of a master networker, I figure I might as well give you another eight. Choosing to do these will most definitely make you more successful. 1. Following up on referrals. If you don’t take the time to follow up on the referrals you get from others, not only are you losing potential business, you are also losing the trust of those who referred you (and probably also any future referrals from them as well). 2. Being enthusiastic/motivated. This is similar to the first point, but it also has to do with your own internal motivation and drive to succeed. 3. Being trustworthy. It’s a proven fact that it’s much harder to regain trust after it is lost – choose the path of trustworthiness. 4. Having good listening skills. You have

*Dr Ivan Misner is a New York Times bestselling author. He is founder and chairman of Business Networking International (BNI), the world’s largest networking organisation. Dr Misner is also senior partner for the Referral Institute, an international referral training company.

business

ONLINE...UP TO THE MINUTE Connect with decision-makers who are sourcing their goods and services online. •Attractive rates. •High traffic positions.

• • • •

& Leisu

re: Fra nkston | Mornin gton Pen insula | Dande nong Februa

WHE THERRE E’S A WIL L...

Business news. Business Directory Fully searchable. Back issues.

ASIAN PA COMPLET CIFIC BOSS WI LL BIGGEST ES FRANKSTON’S DEAGUE REDEVE LOPMEN T

ACT NOW FOR PRIME SPOTS! MORE

OF

CALL MARG HARRISON, 0414 773 153

www.businesstimes.net.au

10 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | February 2014

2450

THE SA SOCIAL AN ME UNFOLD ALYST DAVID CH ING IN A SIMILAR ALKE SEES 2014 MANNER TO 2013

HIX B

RAN

D TAK BEER, WI ES NE AND PL FR

OFF

ENTY OF OM THE RENT SPIRI HICKINBO YOUR RENT OFFIC YOUR RENT THAMS T E TODA OFFIC YOUR E TODA Y | On OFFIC ly E TO Y | On DAY ly aa limited nu |

Only a limited mber limited number of office number of offi s ava ces ava ilable so of office ilable so get in s availab quick! • Service get in qu le so ge d Offices • Service ick! t in quick just $10d Offi for 1-15 • Ser ! peo • justviced5 per ces for week 1-15 ple $105 Offi Virtual ces per just people from for $10Offi ceswee Virt •• Fan k 1-15 people from 5 per ual from Virt tastOffi ceswee ic ons •• Fan k just $15 per from from Offi tast meeual cesite facijust week • Fan tingicroo lities$15 ons itefrom inclper meetast ms, facijust udinwee apa tingicroo ons litie g k rtm ite café s$15 , rest mee inclper facilitie wee ms, udin tingents aura apa launcafé g k s incl roo,ms, nt, serv rtm , rest dromat ents udin apartm aura launcafé g iced , rest&aura mornt, dromat ents,, laun e serviced dromat & mornt, serviced e & more

ry 201 4 | $4.9 5 (GST

inc.)


the year ahead

what has changed? well, Nothing much really s s

5 the ability to respond quickly place them at an increasing advantage over their larger and less nimble competitors.  One of the great truths of business got lost in the enthusiasm for mass marketing and that is that every purchase is local.  Whether it is in a local shop, on a computer screen or via a tablet, people prefer to shop with people they are physically or emotionally engaged with.

So here are three quick tips for local success IN 2014: Keep talking: There’s nothing worse than going silent. You need to keep in touch with and reward your existing (hopefully satisfied) customers to get them to return and recommend you to others. That means using all the communications tools not just the new digital ones.  You may be surprised to learn that despite the

importance of an accessible and functional online presence, consumers still look first to local printed advertising and rate it as the most useful. Keep moving: The ability to respond quickly to changing circumstances and customer needs distinguishes successful organisations. In theory, it should be easier for SMEs to achieve this level of responsive-

ness than for larger hierarchical outfits, but this is not always the case.  Often SME owners can become so enmeshed in the day-to-day of their business that they cannot see the wood for the trees and miss the signals for change. Make time to sit back and take the longer view, make full use of your business advisors; ask them for their outsiders’ perspective. Keep Fit: One of the most difficult parts of running your own business is remembering that you are not indestructible. With the demands of the business ever present it is too easy to forget to make time to look after your own and your family’s mental and physical well-being. If you make only one New Year’s resolution for 2014 make it to take care of yourself and your loved ones first. You can’t run a healthy business if you’re not.  *David Chalke is principal of The Strategy Planning Group Pty Ltd, david.chalke@tspg. com.au

Our accountants are not just number crunchers...

We are business tacticians • accounting & Financial reporting • taxation & compliance • self-Managed super Funds • auditing • research & Development • business structuring • Directors asset Protection

PARTNERS

Accountants, Auditors & Taxation Advisors

CALL TODAY ON 9587 9747 FOR AN OBLIGATION-FREE CHAT.

2478

asV Partners offers a holistic approach to your business and financial wellbeing ... all from under one roof.

www.asvpartners.com.au

February 2014 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 11


COVER STORY: will deague, asian pacific

DEAGUE WILL DO property developer Will Deague is willing to take risks. He heads the company that chose to invest millions in a building – the butt of many jokes – in a city derided far and wide. also, he ferries himself to and from work in a helicopter.

Deague’s family company, Asian Pacific Group, has also launched a chain of “art hotels”, named after prominent Australian artists and decorated with their works. The decision to totally refurbish and redesign Frankston’s much-maligned Peninsula Centre appears to have paid off. The 10-storey grey building looked from a distance like an upended giant brick. It was a fixture on the skyline of Port Phillip and a magnet for vandals and graffitists. Now it has new livery, a new name (Peninsula on the Bay), tenants in new apartments and serviced offices and a cafe and restaurant. Revitalised, it is the first of several major developments predicted to lead Frankston out of the economic and social wilderness to the premier position it once held. Will Deague recounts childhood memories of his Sorrento-bound family stopping off for ice creams from a Dairy Bell shop in the Peninsula Centre. He says the building’s exterior was a bit daunting and the cinemas at the rear were “probably a bit too big with no windows”. But innovative architects, bay views, his decision to include balconies and having Quest as an anchor tenant gave him confidence in the project. With Peninsula on the Bay almost filled with tenants and a second major project – the South East Water headquarters – about to rise alongside Kananook Creek, Deague is certain

BY KEITH PLATT

Frankston’s fortunes will turn around “within three to five years”. Although the eight-storey SEW headquarters will cut some of the views from his building, Deague sees no downside: “If some of them are blocked, that means things are starting to move. “Frankston’s beach is a good as anywhere, but it will take time to overcome the stigma.” Deague, who took over from his father David as CEO in 2008, doesn’t rule out Asian Pacific embarking on other projects in Frankston or the Mornington Peninsula, but says nothing is planned. “We’ve done house and land projects from Rosebud to Portsea and the Mt Martha Valley Country Club [at safety Beach].” His grandfather had a house at Mt Martha and Deague says he “virtually grew up at Sorrento”. With boutique and designer hotels already “big overseas”, the Deague family correctly surmised the public would have the same fascination as it did with Australian art. Melbourne’s The Olsen, The Cullen and The Blackman, are soon to be followed by The Larwill (at the Royal Children’s Hospital), The Watson in Adelaide and The Schaller in Bendigo. The Bendigo project has also produced its own link with the family’s past, with research showing his great, great, great grandfather W H Deague built the city’s

12 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | February 2014


ABOVE: Will Deague at the helm of Asian Pacific . John Olsen’s Popping Blue Bottles III, 2009, (top left). BELOW: Deague with an Olsen frog.

tallest chimney in 1867, a the height of gold boom. Development of a six-star Brett Whitley hotel in Sydney depends on finding a suitable site. Asian Pacific has lodged one of several bids for two heritage-listed sandstone buildings being sold by the state government in the heart of the city’s CBD. Reports put the price of the three-storey lands department building facing Bridge, Gresham and Bent streets at about $80 million. The education department building in George St is also up for sale and occupies an entire city block. Results of the sale-by-tender process will be announced later this year. Deague says that the 100-room Whitely hotel will be the company’s flagship. Asian Pacific has already missed out on a suitable property in Pitt St. Deague’s risks are no doubt calculated – the family company Asian Pacific has consultants at its fingertips and a host of experts among its 500 permanent employees. A risk that didn’t pay off was the one that

saw the loss of a reported $1.99 million when broking house Sonray Capital Markets went under in 2010. The collapse is estimated to have cost the Deagues and other wealthy Melbourne families a total of more than $46 million and led to the jailing of Sonray’s two top executives, Scott Murray (a friend of Will Deague’s from schooldays at Melbourne Grammar) and Russell Johnson. Tall and tanned, Deague admits to getting a bit bored when he’s away from the office for too long. While glad to be back at work after a short Christmas break at home in Sorrento, he nevertheless tries to play golf at least once a week and keeps fit working out. On his runs he has noticed the loss of sand at Portsea’s famous bay beach, but doesn’t subscribe to the belief that it is the result of channel deepening. “There’s plenty of sand around the corner of Point King. I can’t concede it’s due to dredging but, whatever it is, it’s a bloody shame.” Deague’s preferred holidays are “Bali with

the [two] kids and Europe with my wife”. Wife Natalie is a keen photographer and has started her own children’s photography business, Nat Deague Photography. Deague is proud of Asian Pacific’s “wholly Australian owned” tag and historical connections. As well as hotels, Asian Pacific is involved in many other investment areas, including real estate, telecommunications, car parking and self-storage. Father and company founder David Deague, now chairman, still plays a major role and calls Will daily. Brother Jonathon heads up the investment sales side of the group and mortgage broking arm. Will has an unlimited domestic builder’s licence and Jonathon is a licensed real estate agent. While there is a “lot of money” coming from China the company hasn’t sought to find a development partner. “The bankers are our only partners,” Will Deague says.

February 2014 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 13


NEW YEAR RESOLUTIONS

Workforce 2014: happy, engaged, motivated While steady, sustainable growth may be the main resolution for businesses in 2014, we all know that achieving a New Year’s resolution requires consistent focus. Challenging business conditions in a stagnating economy has seen many organisations looking to solidify their market position over the past 12 months, rather than looking toward the next stage of growth. But businesses won’t stay in this holding pattern for long, especially with surging economies in neighbouring countries creating more competition for business. Operators will see escalating competition for customer loyalty, market share, and perhaps the greatest battleground with the fight for talent. Ensuring your workforce comprises the

best and brightest talent in 2014 –who are happy, engaged, and motivated to perform – you need to invest in your people, make them feel valued and proud to work for your business and find ways to stand out from the competition. HR & recruitment specialists Randstad recommend these tips: 1. Keep focus on your employer brand Look at how to attract the best people while also holding on to the stars. Revisit your value proposition and communicate this at every opportunity. Let everyone know about opportunities to further their career? 2. Place workforce considerations at the top of business conversations. Maximising resources while positioning for growth needs to be well managed with

one eye on the future while nurturing and boosting performance and productivity of the current workforce. 3. Ensure your organisation is inclusive Look at how you engage with and embrace diversity in your workforce – including international talent, people of all ages, different cultural backgrounds and identities, people with a disability and sexual orientation. Making your business stand out, particularly amid increased regional competition, will be the key for organisations trying to attract and retain the best talent locally and from around the world. When making your workforce resolutions, ensure these reflect your overall business plans and are integrated into the wider company strategy. Making sure your organisation is an attractive and engaging place to work will be vital, and businesses with the strongest HR plans aligned to the overall business goals will have a significant advantage over the competition.

Buying or Selling a Business? Then your business is OUR business.

When you want your business SOLD, we give you the best chance for the best price. Personal Service Professional Results Small to Large Businesses

ABEL

www.abelrealrealestate.com.au 14 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | February 2014

2465

Abel Real Estate was established in 1965 We are committed to your satisfaction as our customer. We specialise in business sales on the beautiful Mornington Peninsula, South Eastern Suburbs & Westernport regions.

Call or email us today:ABEL REAL ESTATE 9770 1033 Rob Serroni 0404 890 012 commercial@abelrealestate.com.au


HICKINBOTHAM at dromana

Beer, wine and plenty of spirit Andrew and Terryn Hickinbotham (above) are a can do couple. A guided walk around their Dromana winery on the Mornington Peninsula soon reveals the couple’s initiative, whether it involves buildings or products – wine and beer.

WORDS & PICTURES BY KEITH PLATT

Andrew Hickinbotham points out five timber covered stainless beer vats that he picked up for a bargain price from Bell’s Hotel, South Melbourne, when it was being updated and moving out of the boutique beer business.

“I got a call on the Friday saying ‘they’re yours if you can get them out by Sunday’,” he says. Outside, further down the beer production line, machinery that produces steam came from a dry cleaning shop that was closing down. 16

s s

Beer is a big talking point at the winery these days, with two of Hickinbotham’s Hix brands winning awards and proving a popular alternative to wine. After complaints, an ad proclaiming the beer was loved by girls had to be withdrawn from sites on public transport, but that hasn’t caused any hiccup in sales.

February 2014 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 15


2460

We can empower your business with a range of service; • Payables • BAS’s • Tax Returns

• Receivables • Reporting and Advice • Financial Planning and Advice opinion

Mention this ad and receive;

FREE Business Performance Review FREE Business Empowering Kit Plus, First 2 hours bookkeeping absolutely FREE

NOVABK

that’s 1800 www.novabk.com.au

668 225 ???????

Call: 1800

s s

Empowering Quality Businesses

Beer, wine and plenty of spirit The philosophy of not buying something new and purpose built if you can adapt was behind the building that houses Hickinbotham’s restaurant and tasting room. The frame was once a school gymnasium at Hampton. Terryn Hickinbotham’s father was the architect hired to redevelop the high school site sold off by the Kennett state government. The gym lay in pieces in the paddock for five years. The walls came from former abattoirs just down the road. The list goes on: a staircase; the fireplace; a milk vat converted to a mash tun for beer making; the counter is from a former State Bank; ironwork comes from the old Melbourne Steamship building; and glass doors from a Hoyts theatre. Their house on the property came from Carrum Downs. The couple met at La Trobe University while studying for the same botany degree. They established their own winery in 1995 after running the peninsula’s first vine nursery on land Andrew bought in 1988. Stoniers and part of Paringa Estate were among the estates they established. They introduced pinot noir to 26 virgin properties on the peninsula from 1987. Andrew’s Fermentabag has been sold in three countries, including “old Europe” and he uses bacteria to break down the waste grape skins and stalks that are thn used as compost in the vineyard. Because of the Hickinbotham’s “scientific” approach to organic viticulture, Professor David Bellamy was invited to speak at the

14

Business Services & Deceased Estate Taxation Specialists Accounting & Taxation I Business Advisory & Restructuring Succession Planning I Superannuation I Cash Flow Management Statutory Compliance I Deceased Estate Taxation Services I Financial Planning

Jason Bertalli, Director of BNR Partners and leads the firms’ Business Services division. Having over 15 years experience as Business Advisor, Jason and his experienced team work closely with businesses across Victoria bringing practical solutions and an easily understood approach to enhance the development and growth of his clients’ businesses.

PHONE (03) 9781 6800 I EMAIL info@bnrpartners.com.au Level 1, 327-333 Police Road, Mulgrave Vic 3170 16 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | February 2014

2477

Ian Raspin, Director of BNR Partners’ dedicated Estates and Trusts division and brings over 20 years of public practice experience to the firm. Ian’s career began in business advisory services and now focuses on the specialized area of Trusts and Deceased Estates. This division works with both Trustee Companies and Legal Practices across Australia.


hickinbotham

We’re here ... to help you achieve your business goals.

Some of our experts Professional solutions for the South East

Pitcher Partners, a leading Melbourne accounting, audit and advisory firm, has been helping businesses like yours for more than 20 years. And now, we have an office in the South East Region to provide practical business advice and professional solutions in a location that’s convenient to you. For more information contact David Knowles or Vicki Macdermid on

(03) 8610 5000

Level 1, 80 Monash Drive, Dandenong South Vic 3175

www.pitcher.com.au/southeast Independent Member of Baker Tilly International

2472

winery during his last Australian visit. While the materials and machinery are re-used, there can be no compromise in wine barrels. Hickinbotham has about 70 barrels in use at any one time and buys 15 of the $1400 containers each year. While Andrew Hickinbotham says there is a bit of “wine snobbery” attached to the mandatory use of French oak for shiraz, he’s not about to buck the trend by using Hickinbotham assistant winermaker and vineyard manager American oak. The US barrels Jaimie Janda. are acceptable for other wines. He is one of the few - if not the only - Australian winegrowers to have made a million litres of French wine, something he achieved after studying viticulture at Dijon University, Burgundy. Hickinbotham’s vineyard manager and assistant winemaker Jaimie Janda in mid-January was bending vine leaves over this year’s pinot crop to protect the young grapes from the scorching sun. He’s confident most of the fruit will pull through, but the losses evident by scorched grapes already on the vine may cut wine production. The thicker skins of shiraz, cabernet and merlot welcome the heat, a result shown by the winery being awarded gold medals for its 2010 merlot at the Melbourne Wine Show and 2012 shiraz at the Great Australian Shiraz Challenge. “Something different” in 2015 will be made from the Spanish tempranillo and the northern Italian lagrein grape varieties planted in 2013. “We do all of our winemaking, from start to finish,” Janda says. “These new varieties will add interest to the wine list.” Andrew Hickinbotham says they saw a market and started making “craft” beer six years ago. Cameron Turner, who brought along a six-pack of his home brew when applying for a job as vineyard manager, is now head brewer. “Cam was asked to give a talk to the local brewers’ association on making beer with scrap and wine equipment,” Andrew Hickinbotham laughs, as Terryn brings out a brochure listing the gold and bronze medals won by their Hix pale ale at the Australian International Beer Awards. The brown ale won silver at the awards which drew 1200 entries. At the start of beer production, they were producing 30 litres a month, that’s now 1500 litres a month with no sign of slowing down. The original 30-litre brewery is now devoted to research and development. New brews are given the “sessionability test”. A pass is given if drinkers keep asking “for another one, and another, and another”. Terryn’s efforts to make a juice for children led to an “accidental hit” – a 7.4 per cent alcohol Ruby Cider. “It got too warm and started a natural fermentation and we carbonated it. The sales are unbelievable,” she says. But not to kids. “I suppose we should really call it a grider.” “I’m proud we’re now half beer, half wine,” Andrew says. “We’ve never had a business plan, it’s been an evolution of sorts. The only other thing we could do is provide accommodation, although things are getting harder with this being a green wedge area and the tightening of planning laws in bushfire areas.”

February 2014 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 17


HEALTH

Germs don’t make us sick... we do A thoroughly misunderstood aspect of health is this: germs do not make us feel sick. It’s our body’s response that does so. When, for example, a virus takes hold in our respiratory system, which our body then recognises as foreign and a potential threat, our immune system responds. It has various strategies, ranging from lifting our temperature (which kills bacteria and changes the membrane properties of cells so viruses cannot replicate), to coughing and sneezing (to expel the pathogen), or flooding our mucous membranes (to flush it out). But no matter which of these weapons our immune system chooses to deploy, none of them feels good to us. Suddenly we are uncomfortably feverish, we have mucous congesting our airways, an uncomfortable cough, and our energy is consumed in fighting the invader and less available for normal activities. This response is making us feel ill. Actually we greatly preferred it when we were oblivious to the pathogen’s presence, a few hours back when we felt perfectly well. A similar thing happens if we injure a body part – strain a muscle, say – only this time our nervous system gets involved. It shoots pain messages to our brain, which then tries to decommission the injured part (which then swells as more resources arrive at the area, restricting movement). This prevents further damage and accelerates healing. An interesting thing about pain is that research shows we experience it in proportion to how serious our brain thinks our injury is. So when at first we don’t realise we’ve hurt ourselves, we feel little or nothing. Then we notice that big gash on our foot and… %#%^@&^#@! But I digress, the point is, the pain of a broken bone or aching kidney ensures we let it rest and heal. It’s our inbuilt first-aid kit going to work. Once we understand this, we can see that outside intervention can easily undermine our body’s own healing mechanisms. I’ve ranted before about one classic example, the wholesale practice of swallowing Panadol the moment we have a slightly elevated temperature. (Worse, giving it to our kids.) The problem is that, like foul tasting medicine from the doctor we might have to swallow, the body’s own treatment (fever, congestion, pain, etc.) is not only

Michael Ellis*

Chinese Herbalist

Somewhere in here, I am convinced, is an explanation for the placebo effect unpleasant but may be disproportionate to the threat. We do need fever reducing medications (very occasionally) because sometimes our body’s own remedies have a high price. A fever can kill a pathogen, but it can also damage the body – even kill you – if it’s high enough and you are

18 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | February 2014

vulnerable. Furthermore, the body does not discriminate well between types of pathogen. Any pathogen might become a serious enough infection to kill, so even the mildest virus can provoke a powerful immune response. The body tends to deploy its treatments on the assumption that every invader is mortally dangerous, which makes more evolutionary sense than the alternative, which would be underplaying invasions and risking being wrong just once. We improve marginally as we get older, but we humans have always been poor at assessing our own illnesses and therefore have outsourced the job to professionals who are. These are the people who have the background knowledge to know our bodies better than ourselves, to recognise how an illness is best treated. Healing professionals – healers, shamans, witch doctors and medicos – have been integral to all cultures, offering powerful cures to the sick, whether their remedies were rituals or rest, herbal remedies or reconciling with insulted ancestors. The treatments of healers might have defied science in a biochemical sense but one ability all had in common was to make their patients feel they were in the hands of an expert. In effect, a healer who applies an impressive “cure” is persuading the body that its own weaponry can be decommissioned. If the body trusts its healer it then reduces its own efforts and so the patient feels better. Viewed from this perspective, medicine is an art by which a doctor persuades the patient’s body to offload its healing responsibilities onto them. (One could argue that many in the West consider their health to be entirely their doctor’s job, and thereby absolve themselves of any responsibility.) Somewhere in here, I am convinced, is an explanation for the placebo effect, the phenomenon of patients improving as much when given sugar pills as “real” medicine (as long as they were convinced the pills were real, or the healer was powerful) and that science has established accounts for just over 30 per cent of healing responses. It’s something to contemplate next time you are laid up. *Michael Ellis is a registered Chinese herbalist in Mt Eliza. Visit www.mtelizaherbal.com


MARKETS

China’s massive South-North Water Transfer project.

BHP, China’s steel addiction BHP has traded in a tight band between $39 and $31 over the past two years through waves of alternating optimism and doubt. There were many elements to this: falling iron ore prices, large cost reductions, increased iron production capacity, writedowns of shale gas assets, firmer oil prices and the prospect of India returning to the iron ore export market. The major note in this flow of data was no doubt iron ore. By 2012-13 ferrous ores were producing more than 50 per cent of pre-tax profits and, even as the price began to fall in September 2011, BHP, Rio and Fortescue stuck to their conviction that China’s urbanisation policy had a long way to go. They (and their big competitor, Vale in Brazil) have put more chips on the table. This was a surprising move as strong free marketeers were in effect backing bureaucrats and social engineering theorists. It also ignored warnings by agencies like the IMF and the World Bank – and many of China’s own economic agencies. To various degrees they were all worried about the industrial over-capacity across China and the debt it would leave behind. Mao told party members to “seek truth from facts”. One obvious fact was that by 2008 China had already built too many steel mills, too many shipyards, too many cement works and had done so across 20 industries identified by the NDRC, China’s highest economic agency. The second and third

Richard Campbell* Stock Analyst

tier cities had gone totally overboard with the likes of solar plants, for example. In 2012, one NRDC official said at least 130 of the 400 had to close. By late 2013 most had ether merged or collapsed and Hebei was closing 29 blast furnaces. The iron ore exporters saw it differently. They were convinced China had become a steel addict. Policy supported strongly at the highest levels was to lift the urban population from the current 52 per cent living in cities to 70 per cent by 2030-40. This would call for far more steel for inter-city rail links, freeways, bridges and massive projects like the SouthNorth Water transfer project – three inland Panama Canals. This was the engineering and social engineering view of things, but the means of financing this policy were not fully worked out inside China. The cities and local administration had the major responsibility for these works, but not the taxing power. They only received 25 per cent of the VAT tax. But as promotion was partly based on regional GDP performance, they didn’t hold back when the GFC hit and orders collapsed.

Jobs were urgently needed so they set up borrowing agencies and vied with each other to produce larger and better factories, apartment complexes, urban transit systems, sports stadia, airports… you name it. Wuhan alone boasts 10,000 separate projects from major bridges to an underground rail system with eight lines. The architecture and engineering was often outstanding, but whether projects supported the debt raised was an entirely different matter. So a combination of policy, need, civic pride, ambition and greed lifted China’s aggregate debt sharply across 2009-13 to 200-210 per cent according to France’s Societie Generale and JP Morgan. Debt servicing — interest and principal ­— is now absorbing 38 per cent of GDP. It is another version of the situation in the US leading up to the GFC when non-performing mortgage debt was bundled and sold on to institutional investors. In China this long-term municipal debt for infrastructure projects is re-packaged and sold to the public, the laobaxiang, which believes that these infrastructure projects offer high returns with low capital risk. (We have many examples of our own like the $3 billion loss on Brisbane’s badly conceived Airport Link) So the Politburo faces a stark dilemma. If it stands behind “wealth products” issued unofficially it will have to absorb large system-wide losses as in 1998-2003 when the bank bad debt was as high as 20 per cent. Or will it tell the cities these losses are their problem? The fraud and embezzlement interwoven through it all adds an additional dimension. Just a glimpse was seen in the trial of an associate of the former Minister of Railways. His billion or more came from a standard fee of four per cent. China’s urbanisation program has helped the elite to enrich themselves. Sydney’s property market is just one outlet for the cash. And so to return to the BHP share price: the real question is not whether the iron ore price will fall to $110 by next May or $90 by June as Goldman Sachs and others think, but how China’s leaders stop this capital investment free-for-all, introduce discipline and stop the plundering. * Richard Campbell is Executive Director of Peninsula Capital Management, Tel. 9642 0545. rcampbell@peninsulacapitalmanagement.com.au

February 2014| Frankston / Mornington Peninsula / Dandenong BusinessTimes | 19


act fast on negative comments Jessica Humphreys* Social media consultant

One of the biggest concerns businesses have with social media is the risk of negative comments. There are certain steps you can take to minimise the damage of negative comments. 1. Have a crisis policy. Have steps in place so when a negative comment is received you can snap into action. 2. Have a disclaimer on your Facebook page and website. Include a disclaimer that outlines what is and isn’t acceptable

behaviour. This won’t stop people from posting negative comments, but it covers you when you delete comments that breach Facebook’s terms of service. 3. Respond asap. Keep in mind that everyone who visits your page can view comments, this is why it is important to respond straight asway. If you show your consumers that you are listening and appreciate their concerns, you may be able to turn a complaint into a positive experience. Never delete a comment unless it breaches Facebook’s terms of service. 4. Try to move the conversation away from the public sphere. Acknowledge their comment and provide them with contact

MACROS CAN DELETE THE DRUDGE WITH AUTOMATION Neale Blackwood* Business software specialist

While Excel is a powerful spreadsheet, some tasks can be repetitive and timeconsuming. Some of this repetition can be replaced by macros. A macro is a set of programming commands written in Excel’s built-in programming language, Visual Basic for Applications (VBA). Luckily you don’t need to write a single piece of code to take advantage of Excel macros. Excel has the ability to record macros (just like a video recorder) so that you can record your processes and then replay them in the future to repeat those processes. Excel writes all the VBA code for you. Recorded macros are easy to create and re-run. There are a number of limitations with recorded macros and not all tasks lend themselves to a recorded macro. All the limitations of recorded macros are removed by custom-written VBA code. You can automate virtually any repetitive task and also add extra functionality to Excel to speed up your work using custom written VBA code. Writing VBA code is a specialised skill and does require training and practice. Processes that could be automated via a recorded macro include - Complex formatting tasks - Repetitive copy and paste processes - Opening files in sequence and using refresh to update data from external sources - Creating a new sheet and setting it up with headings and formats

- Separately print different sections of your sheet - Examples of custom-written macro processes - Combine multiple data tables into a single data table to allow the use of a pivot table - Extract department data from a data table and email each department manager their own data - Deleting blank or zero rows - Data cleansing operations - making downloaded system data usable - Linking print footers and headers to cells - Adding rounding or error handling functions to existing formulas - Print both a hard copy and a pdf in one operation - Printing sheets in a certain order Whether or not a macro can help depends on the exact processes involved. In many cases a macro may be able to perform 80 to 90 per cent of the work and the user can complete the rest. This can make huge productivity savings and release your staff from performing boring, mundane, repetitive and time-consuming work. Excel macros offer the possibility of automating other tasks that you may be doing manually or in other software. Macros can also be written for Word and Outlook.

*Neale Blackwood owns and operates A4 Accounting. He does Excel consulting, webinars, training and coaching. Mobile: 0402 882122

20 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | February 2014

details to discuss this further or ask them to provide you with their details. 5. Screen shot. Ensure you take a screen shot of the comment as soon as possible for your records. It is not uncommon for people to delete their comments. If you receive a complaint via traditional methods treat it with the same importance you would if it was in a public sphere. Handle them efficiently and correctly the first time and, hopefully, you will prevent further complaints. *Jessica Humphreys operates Social Concepts, a social media consulting business. Send questions to Jessica@socialconceptsconsulting.com

CONVINCER STRATEGIES AND YOU by Beverley Unitt* In a December issue column I introduced you to convincer strategies, one of the powerful filters our brain uses to help us make sense of our experience. That column covered automatic convincers, period of time convincers and three to five times convincers. The feedback was from readers having their big ‘ah-ha’ moment: “So that’s why my once-only pitch or advertisement has not necessarily worked.” As useful as it is to know about convincer strategies that play out in customer land, the biggest benefit is when you become familiar with your own convincer strategy. When you do this, you can use the knowledge in many ways for better business outcomes. For example, if you notice you have been playing only to your natural strength around how you make a decision, imagine the possibilities when you choose to stretch the muscles and step into your customers’ shoes and see how they make a decision. Honing this skill means you can build rapport faster. You can also learn to use respectful language that talks to their convincer strategy – not your own. Another huge bonus of knowing your convincer strategy is the increased effectiveness you bring to achieving your business goals. Do this super quick quiz, and discover how. How often do you have to do something in business, before you know you can do it really well? • Once • Three to five times


CONTRIBUTIONS

*Beverley Unitt is a qualified NLP Master Practitioner, an NLP Trainer, and an eDISC Trainer. Website: bev@beyondsuccesscoaching. com.au or 0402089988.

‘PROUDLY’ HELPING BUSINESS Help is at hand for entrepreneur professionals who are not consistently achieving their goals as well as those struggling to take the next steps. Business professionals Gerald Richards and Beverley Unitt are encouraging regional business people to focus on success rather than problems. Spurred by publicity over summer identifying Frankston’s shortcomings, they are planning a free day for business owners and professionals on Saturday, 1 March. Richards advises on the focus needed for increased sales and profitability while Unitt’s skills in Neuro-Linguistic Programming help to develop more effective thinking and behaviour in individuals and teams. Together, they encourage business owners and aspiring professionals to develop their enterprise skills. The Frankston venue for ‘Secrets of Rockstar Entrepreneurs’ has a capacity

for 60 participants. The free tickets are available at www.rockstarentrepreneur.biz “We used Rockstar Entrepreneurs in the title for our presentations because we think of rock stars as idols who have achieved something out of the ordinary while the word entrepreneur is about inspiration, attitude and passion,” Unitt said. “So, if you have a passion for getting great business results, you won’t settle for mediocre – because ordinary is not a standard – and you love to know the how and are curious about what’s missing for you ... you should be there.” The pair met last August when they volunteered as mentors in Frankston City Council’s pilot program for local business owners and others to help the long-term unemployed. “We decided later that we would present a free day of valuable must know sessions for business owners to share some of the knowledge, we know from our own experience and client feedback, leads people to success,” Beverley Unitt said.

2462

• Over a period of time • I never know If you picked ‘Once’; make sure your business goals for 2014 are written with a focus on one or two major outcomes. You should also give yourself one or two different areas of business in which to have those outcomes. If you picked ‘Three to five times’; your business goals for 2014 should be written with the focus on three to five major events to occur. This quantity is important to your behaviour style as it gives you evidence that, when achieved, you created your outstanding year. If you picked ‘Over a period of time’; your 2014 needs quarterly goals, with a major outcome in each quarter, to focus on. The quarterly achievements give you milestones as evidence that your year is panning out as planned.

February 2014 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 21


MANAGING

Your personal battle Business leadership can be a battle where you have to make many decisions every day with many outside influences upsetting the normal flow of business, but the most challenging battle often takes place internally – a battle between your head and your heart. Obviously, there are many factors influencing leaders’ decisions, but it is their personality that tends to dominate how they make their choices. Some leaders tend to be more influenced by their head, while others are more emotional and tend to be driven by their heart. Understanding more about your personality and how it shapes your leadership style is a big step towards making better leadership decisions. The head side of your personality finds comfort in facts, tangible information, data, and systematic analysis while the heart side thrives on hunches, gut feelings and intuition. In psychometric testing, these differences are sometimes characterised as being dichotomies that are at opposite ends of scales, which run from sensing to intuition and from thinking to feeling. There are many forms of personality tests, but one model that has developed long-term credibility is the Myers Briggs Type Indicator (MBTI). This instrument is best administered by a trained professional, but you can also find the test online and do it yourself. The test will determine your personality preferences within a framework of 16 personality types. This model was based on work done by renowned Swiss psychiatrist Carl Jung and has been developed over 50 years into a sophisticated tool that can help you to understand differences in relationships, in both a work and personal context. It regards all 16 personality types as potentially successful in the work context, particularly when you understand your own style and the personalities of others in your work team. While MBTI is major universal instrument, there are many other personality tests that can help you to understand your preferences and potential strengths and weaknesses. Most major companies use a variety of these tools as part of their recruitment and management selection processes to enable them to understand how individuals are likely to behave under work pressures.

Hamish Petrie*

Business Consultant

It is worth understanding that for each personality style, there is a backup style that may be shown when the person is under substantial pressure. There are many benefits that can be derived from having a clearer understanding of your own personality. If you fall to one end of these scales, you will probably struggle to even understand that there maybe another perspective on an issue. For example, if you always make decisions with your head, then you need to recognise that this will often mean that you miss opportunities, as you may be slow to react to situations because you are taking the time to collect data and do analyses. You may also miss out on connecting with more intuitive people, who may argue that the numbers don’t provide a clear understanding of what is really important. If this is you, then the best solution is to accept that you can never win the internal battle, so you should consider taking the battle externally. Most small business leaders don’t do the whole thing just by themselves and hence there is a need to share your ideas and plans with someone else. Understanding the personality and inherent strengths and weaknesses of your partner will be very helpful as you start the process. In most contexts, the best outcomes will be achieved when there are different personalities involved in the decision-making. There are stereotypes of a head-driven male with a heart-driven female sharing responsibility for a small business, but there are many other combinations that can also be successful. The important thing is to recognise the best parts of each personality and to build the business on

22 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | February 2014

these strengths. The greatest dangers occur when you have two or more people in the business who have very similar personalities and as such, they miss the diversity of inputs for different personalities. When this happens, there are real dangers that “group thinking” will result in decisions that don’t work well when they are put to the test. As you expand your team, it becomes very important to recognise the collective personality of the team and to put a high value on the differences that exist in that team. It is also worth understanding that for each personality style, there is a backup style that may be shown when the person is under substantial pressure. This may happen occasionally when the effect of undue pressure pushes you further than normal. Next time that you are facing a major business decision, pause in your process and consider if you have balanced the input from both your head and your heart, and, if necessary, make an extra effort to balance up your thinking by getting some additional input for the personality type that is under-weighted. This way, you are much more likely to make a decision that will gain the support and commitment of all of your stakeholders. Have you ever noticed that people who are branded as managers have a bias towards wearing a tie. Well, a tie is a management device invented to separate the communication between your heart and your head. So, if this is you, take off your tie and let your heart have an increased role in your decision making. Action Planning Questions: 1. Have you done an MBTI test and determined your personality preferences? 2. Have you shared your test outcomes with your co-workers and discussed the individual personalities within the team? 3. Do you often solicit input from someone with a different personality before making decisions? Note: for further information on MBTI, see http://www.myersbriggs.org/ *Hamish Petrie had a 37-year corporate career including 25 with Alcoa Inc. His latest position was VP People and Communications for the Global Alcoa Corporation based in New York. He can be contacted at hamish@nitroworld.net or on 0404345103. © Hamish Petrie 2013


m: 0404 135 345

businesstimes

e:josh@monstaprint.com.au

directory INSURANCE

WE BUY SCRAP METAL Urban Recycling Pty Ltd 7 Glomar Court Dandenong VIC 3175

, offices, trades and services. Please contact us for a free review of your insurance and an alternative quote. Address - Suite 1, 14 Ranelagh Drive, Mt Eliza Vic 3930 03 9775 2355 mornpen@midlandinsurance.com.au www.midlandinsurance.com.au

P: 1800 873 292

2480

F: 1300 873 292

2468

RECYCLING

STATIONERY 2469

PROPERTY

Serviced Offices from

$105 per week Virtual Offices

1300 762 995

from

25 Titan Drive, Carrum Downs Vic 3201

Secure online ordering available at

www.cartridgesplus.com.au

2459

Call 9863 7888

2470

$15 per week

New & Remanufactured Cartridges for Laser, Inkjet Printers & Copiers.

Call us today to get T$500 Kick Start Bonus for the first 50 callers! Bartercard will: • • • • • •

bring you new customers improve your cash flow help move stock or fill seats fill downtime improve your market share increase your networks

Call us today Bartercard Mornington Peninsula

Shafeek Yoosuf 0422 313 900 or 03 9773 8177 shafeek@bartercardmornington.com.au

bartercard.com.au

February 2014 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 23


A Voice For Business 76 Reid Parade (PO Box 428) Hastings VIC 3915 P 03 5979 7744 F 03 5979 7944 e info@businesstimes.net.au

2461

To the Business Owner

POSTAGE

PAID

AUSTRALIA


BT February